States are clearing the legal hurdles around providing benefits to independent contractors and the idea is gaining traction in Congress.
Earlier this month, online food delivery company DoorDash announced that it had rolled out a new pilot project with the state of Maryland, that would allow drivers for the app to receive contributions to a savings account that could be used for health care, retirement, or paid time off. For drivers that earn more than $1,000 a month and complete more than 100 deliveries, DoorDash will contribute 4% of their pre-tip earnings into the account, the company said.
This marks the third state DoorDash has partnered with to set up a portable benefits pilot, which company CEO and co-founder Tony Xu said allows drivers on the platform to get “access to meaningful benefits without having to sacrifice” their independence.
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